China Tariffs

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  • SalesServiceGuy
    Field Supervisor

    Site Contributor
    5,000+ Posts
    • Dec 2009
    • 8139

    #1

    China Tariffs

    Trump 2.0 tariifs have gone into effect against China.

    For the printer/copier/parts/toner industry in the USA prices for consumers could soon rise by 10%.

    Many Japanese printer/ copier OEMs have been trying for the last few years to diversify their manufacturing facilities away from China.

    China has retailated but in a much more muted way with new tariffs starting Feb 10th. China has targeted approx $20B of US imports vs the US targeting $450B worth of Chinese imports.

    The Ministry of Commerce and China’s customs administration also announced new export controls effective immediately on more than two dozen metal products and related technologies. Those include tungsten, a critical mineral typically used in industrial and defense applications, as well as tellurium, which can be used to make solar cells.

    Beijing has also signaled its intention to avoid a spiraling trade war like the one seen during Trump’s first term in office. At that time, the White House slapped tariffs on hundreds of billions of US imports from China, while Beijing retaliated.

    China has diversified its economy and trade partners since that time, but its export-reliant economy is grappling with slowing growth and other challenges.
  • SalesServiceGuy
    Field Supervisor

    Site Contributor
    5,000+ Posts
    • Dec 2009
    • 8139

    #2
    For those OEMs who have not yet diversified their manufacturing base away from China into places like Indonesia, Vietnam, back to Japan, etc the next 2-4 years will be damaging.

    There is also the strong probability that what Trump 2.0 attempted to do with tariffs were illegal. Trump invoked emergency economic powers when there was no emergency. The US has low unemployment, low inflation, a strong stock market and the highest GDP growth rate in the world (courtesy of President Biden).

    The fact that Trump 2.0 came within an inch of a brutal, damaging trade war with it's two peaceful neighbours is not a case of no harm, no foul. Trump 2.0 decided to ignore the binding USMCA trade agreement that he signed indicates that the USA may no longer be considered a trustworthy partner. The US is now in an immeasurably weaker negotiating position than it was a week ago.

    Trump 2.0 today basically secured a trade deal that was already in place by Canada in Dec 2024 with a few minor concessions. The art of the deal by Canada!

    This trade chaos is not over because China has launched legal action against the USA with the Word Trade Organization because Trump 2.0 launched a major trade war without proper reasons.

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